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Simple English definitions for legal terms
primary-line injury
Read a random definition: arrestando ipsum qui pecuniam recepit
A quick definition of primary-line injury:
A primary-line injury is when a seller charges very low prices to try to get rid of their competition. This is against the law because it hurts other businesses and makes it hard for them to compete. It is different from a secondary-line injury, which is when a seller charges different prices to different customers, which also hurts competition.
A more thorough explanation:
Primary-line injury is a term used in antitrust law to describe the practice of charging below-cost prices to eliminate competition in the market. This is a violation of the Robinson-Patman Act, which prohibits price discrimination.
There are two types of primary-line injury:
- Primary-line injury: This type of injury hinders or seeks to hinder competition among the seller's competitors. For example, if a company sells a product at a price lower than its cost to produce it, in an attempt to drive its competitors out of business, this is a primary-line injury.
- Secondary-line injury: This type of injury refers to discriminatory pricing that hinders or seeks to hinder competition among the seller's customers. For example, if a company offers discounts to certain customers, but not to others, in an attempt to favor one customer over another, this is a secondary-line injury.
Here's an example:
Liggett, a cigarette manufacturer, accused Brown & Williamson of offering discriminatory volume rebates to wholesalers in an attempt to eliminate competition from the economy segment of the cigarette market. This is an example of a primary-line injury because it harms direct competitors of the discriminating seller.